Saudi-based ArcelorMittal Tubular Products Al-Jubail (AMTPJ) has awarded Chinese contractor Sinosteel Equipment and Engineering Company (Sinosteel MECC), a wholly owned subsidiary of Sinosteel International, a contract to build a new heat treatment and finishing line at its seamless steel pipe production facility in Jubail.

ArcelorMittal TPJ is a joint venture entity in which Saudi Arabia’s sovereign wealth institution, the Public Investment Fund (PIF) owns the majority share of about 66%, while Luxembourg-headquartered steelmaker ArcelorMittal holds the remaining share of about 33%.

As part of its contract, Sinosteel MECC will perform engineering, procurement and construction (EPC) works to build a new seamless steel pipe heat treatment line, which will have a diameter of 114.3 to 406.4mm, and will have an output capacity of 200,000 tonnes a year (t/y).

Sinosteel MECC will also perform EPC works on a seamless steel pipe finishing line, having a diameter of 114.3 to 355.6mm, and an output capacity of 150,000 t/y.

The contractor expects to break ground on the expansion project in December.

Sinosteel MECC, a wholly-owned subsidiary of Shenzhen-listed Sinosteel Engineering and Technology Company Limited (Baowu), did not reveal the value of its EPC contract.

Italian firm Tenova Italimpianti will supply licensed finishing technology for the new facility.

ArcelorMittal TPJ has been operating the seamless steel pipe production facility in Jubail, in Saudi Arabia’s Eastern Province, since 2013, when the plant came online with an output capacity of 600,000 t/y. Saudi Aramco is the manufacturer’s biggest customer.

The plant’s production capacity increased considerably to 1 million t/y, following ArcelorMittal’s acquisition of Jubail Energy Services Company (JESCO) from the majority PIF-owned Industrialisation & Energy Services Company (Taqa) in 2021.

The ArcelorMittal TPJ facility mainly produces oil country tubular goods (OCTG) such as seamless steel pipes and structural pipes, which are used in the oil and gas (both offshore and onshore), shipbuilding and infrastructure industries.